Feds launch early retirement program for public servants after delay

President of the Treasury Board Shafqat Ali waits to appear before the Standing Committee on Government Operations and Estimates on Parliament Hill in Ottawa on Thursday, Feb. 12, 2026. THE CANADIAN PRESS/Adrian Wyld

OTTAWA — Public servants who are eligible for the federal government’s early retirement incentive can now officially apply for it after delays in launching the program.

The program is designed to allow some federal workers to retire early without a pension penalty and was outlined in the fall as part of the government’s ongoing effort to cut the number of public servants.

But it couldn’t be launched until after the budget implementation bill was passed.

The legislation became law on Thursday after it passed the Senate and received Royal Assent and the application portal opened today.

The federal government sent letters with information on the program to about 68,000 public servants who may be eligible.

The Public Service Alliance of Canada has filed a policy grievance and has asked the federal government to halt the program, arguing it avoids the government’s obligations under employees’ collective agreements.

This report by The Canadian Press was first published March 27, 2026.

Catherine Morrison, The Canadian Press